Search
CloseOpen
eToro vs Plus500
Back to blog categories

eToro vs Plus500: Which Trading App Is Better

Both well-known online brokers for buying and selling stocks, commodities, indices, and currencies, eToro and Plus500, offer similar services. Still, they have some key differences that investors should know before signing up.

First of all, eToro is a global social trading and investment platform. It has over six million registered users in more than 140 countries. The company allows investors to copy the trades of successful traders or become copied by others. 

Conversely, Plus500 is an online broker for buying and selling stocks, commodities, indices, and currencies. The company was founded in 2008 and has over one million customers worldwide. Plus500 offers CFDs on shares, ETFs, options, indices, commodities, and currencies.

About eToro

Considered a social trading platform where you can create a portfolio, eToro provides traders with the resources to follow other traders and even copy their trades. If you are new to the world of stock trading, this could be a great platform to start with.

You can get started with as little as $50, and the company offers a wide range of assets to trade.

About Plus500

Founded in 2008, Plus500 is an international fintech company that allows trading in CFDs on shares, ETFs, options, indices, commodities, and currencies.

Plus500 allows you to open an account with as little as $100 and trade in real-time. You can use the platform to speculate on the rise or fall of prices without ever owning the asset. CFDs (contracts for difference) enable you to take a position on the cost of an asset without ever having to hold it.

eToro vs Plu500: Fees

One of the critical differences between eToro and Plus500 is how they charge. However, trading spreads, not fees, are the primary source of revenue for Plus500.  

For example, say you are trading EUR/USD, and you purchased $100,000 worth of EUR with USD, you will only need to pay a $2.50 spread (the difference between the buy and sell prices).

Plus500 Fees

Deposits, withdrawals, trades, and position rollover are all free of charge in Plus500. Nonetheless, there are a few costs that you should be aware of:

  • Overnight Funding: This is the amount you pay or receive if you hold a position overnight. For example, if you buy EUR/USD at 1.15 and sell it the next day at 1.16, you will have made $100 (less for any commissions and fees).
  • Currency Conversion Rate: When making a withdrawal or depositing in a currency other than your account base currency, Plus500 will use its conversion rate to calculate how much money will be transferred. The company’s current rates can be found on its website.
  • Inactivity Fee:  If you do not make a trade or deposit in your account for a period of three months, Plus500 reserves the right to charge an inactivity fee of $10 per month for up to 3 months. 
  • Guaranteed Stop Order: You can use a guaranteed stop order if you want to ensure that your order is filled at a specific price. This will incur an additional fee which varies depending on the market conditions.

eToro Fees

eToro, like Plus500, does not have trading fees and profits off of spreads as well. However, unlike Plus500, it charges a $25 withdrawal fee and requires a $50 minimum withdrawal. Other eToro fees:

  • Deposit: No fees
  • Withdrawal: $25
  • Minimum withdrawal: $50
  • Overnight funding fee: Varies; see website for details 
  • Currency conversion rate: From 50 PIPs
  • Inactivity Fee: $10

eToro vs Plus500: What You Can Trade

Both eToro and Plus500 offer trading for a wide range of assets, including stocks, commodities, cryptocurrencies, indices, and currencies. However, eToro has 3056 tradable symbols, while Plus500 has a capacity of 1896. What makes eToro unique is that you can also invest via Copytrading, wherein you copy the trades of successful traders within its platform. 

Security

Regulated by the Financial Conduct Authority (FCA) in the UK, eToro is licensed with CySEC, the Cyprus Securities and Exchange Commission.

On the other hand, Plus500 Ltd. is a member of the London Stock Exchange and is listed on the Main Market.

Plus500UK Ltd is authorized & regulated by the FCA (#509909).
Plus500CY Ltd is authorized & regulated by CySEC (#250/14).
Plus500SG Pte Ltd, licensed by the MAS (#CMS100648-1) and IE Singapore (#PLUS/CBL/2018).
Plus500SEY Ltd is authorized and regulated by the Seychelles Financial Services Authority (Licence No. SD039).
Plus500AU Pty Ltd (ACN 153301681), licensed by:
ASIC in Australia, AFSL#417727, FMA in New Zealand, FSP#486026; Authorised Financial Services Provider in South Africa, FSP #47546.

Both eToro and Plus500 offer high levels of security for their users. They incorporate various measures to protect their client’s accounts, including 2-factor authentication, SSL encryption, and cold storage for cryptocurrencies.

Ease Of Use

Both eToro and Plus500 are easy to navigate, with user-friendly interfaces. Not only are their websites well designed, but their corresponding mobile apps also prove to be smooth and intuitive. However, as a beginner trader, eToro is a great option as you are offered a wealth of educational resources to help you get started.

Other Features

As mentioned above, eToro offers a unique feature called Copytrading, the perfect playground for you to copy the trades and portfolios of other traders within the community. A great way to learn and gain experience.

Conversely, Plus500 offers Webtrader, a platform that allows you to trade within your browser or mobile. As a result, users can access a wide range of markets and trade in real-time. Even more impressive is that the app is available across 36 languages on iOS, Android, and Windows.

Conclusion

Regardless of the differences provided above, there is no clear winner between eToro vs Plus500. Your choice in these trading platforms really depends on personal preference and your unique trading needs. Both companies offer a wide range of tradable assets that can be transferred on desktop or mobile platforms.

You can also try our comprehensive comparison tool for financial services platforms. You only have to answer a few simple questions, and it will show you which is the best trading app for your needs. 

Back to blog categories